June 12, 2014

‘Another Swing, Another Miss’: Retail Sales Up 0.3% in May, Trailing Expectations

Filed under: Economy,Taxes & Government — Tom @ 9:00 am

Hate to break it to everybody, but the trend seen in the first quarter’s GDP results showing that Obamacare-related health care costs are crowding out retail sales continues.

From the Census Bureau:

The U.S. Census Bureau announced today that advance estimates of U.S. retail and food services sales for May, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $437.6 billion, an increase of 0.3 percent (±0.5)* from the previous month, and 4.3 percent (±0.9) above May 2013. Total sales for the March 2014 through May 2014 period were up 4.3 percent (±0.7) from the same period a year ago. The March 2014 to April 2014 percent change was revised from +0.1 percent (±0.5)* to +0.5 percent (±0.2).

Expectations (Business Insider; Bloomberg) were for 0.6% and 0.4%, respectively.

April’s and May’s combined 0.8% is disappointing after the weak first-quarter numbers. The bounceback needed to be a lot bigger to support the 3.5% 2Q GDP growth economists keep hoping for.

Zero Hedge: “Another swing and a miss for the so-called Q2 GDP surge.”

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2 Comments

  1. Which brings up a studiously avoided point by liberals. A dollar of government spending is not equal to a dollar of private sector spending. In this case a dollar spent on wealth redistribution via ObamaCare is $2 NOT spent on retail items.

    As pointed out before, ObamaCare is a liberal jobs program, those higher premiums taken out of the hides of middle class insured for the so called less fortunate are actually paying the salaries of so called Navigators and CMS paper pushers reviewing ObamaCare applications. It’s like we traveled back in time before Block Grants to the States when the bureaucracy in Washington consumed more of the alloted budget than actual money going to the intended recipients. This is all apart of the liberal “we care” approach to paying lipservice to the constituents while enriching themselves all the while feeling all self righteous about it. This is Obama’s idea of a full employment economy where the “people who care” are supported by the poor unfortunates in need of supervision and services. The Masters always justify their rule over the serfs as beneficial to the serfs.

    Comment by dscott — June 12, 2014 @ 9:23 am

  2. [...] it to Martin Crutsinger at the Associated Press. His Thursday writeup on May’s disappointing retail sales result — a 0.3 percent increase compared to expectations of 0.4 percent to 0.6 percent — was infused [...]

    Pingback by BizzyBlog — June 13, 2014 @ 10:31 am

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